Welcome to NexusFi: the best trading community on the planet, with over 150,000 members Sign Up Now for Free
Genuine reviews from real traders, not fake reviews from stealth vendors
Quality education from leading professional traders
We are a friendly, helpful, and positive community
We do not tolerate rude behavior, trolling, or vendors advertising in posts
We are here to help, just let us know what you need
You'll need to register in order to view the content of the threads and start contributing to our community. It's free for basic access, or support us by becoming an Elite Member -- see if you qualify for a discount below.
-- Big Mike, Site Administrator
(If you already have an account, login at the top of the page)
I don't look at premium pricing compared to past history at all. I pick the commodity and strike price and just do it. Most commodities options that I trade don't have enough volume to worry about picking if they are historically expense. I just feel good if I can get a buyer at a fair price and get the option sold.
Well I have the following from 2012, Jan, Feb, May, June, July, Aug/Sept, Nov/Dec.
It looks like he has gone bi-monthly at the moment and of course he had broker problems.
I've attached the latest few if anyone wants to see what they are like.
NOTE: This is for info only, I am not in any way making a recommendation to use them
How much margin required, for example, to sell 1 ES contract. Is not it too dangerous because of unlimited losses?
Or you cannot lose more than the margin amount taken from your balance?
Why you prefer futures to equities, are there any significant advantages?
Are there weekly options on futures or monthly only?
The margin required to sell an option depends on margin amount for the future contract, time to expiration, distance the option strike is from the futures price, volatility. The margin amount can change daily.
Selling options is less dangerous than doing a future. They both do have unlimited loss. But the option does not lose money as fast as a future contract.
Futures are just a different type of contract with different fundamentals that can be researched just like equities. But I find them to be more predictable.
I'm wondering how the fiscal cliff might impact commodity prices...You would think that the metals and energies would fall due to the increase in taxes = less spending by you and me and less production. I unloaded my CL puts last week and currently have no open positions. I'm waiting to see how all of this "Wash DC still not doing anything and getting a pay raise" works out...or not.
I'm watching the energies and silver but not doing anything until the FC is resolved or not.
As Ron already said the margin varies due to many factors also including the broker used. So it is difficult to give an exact figure except to say it will be less than the margin on a futures contract.
If you have sold an ES option and the price goes away from you the value of the option decreases(you are making money). If it comes towards your strike price the value of the option rises but not as fast as a futures contract would rise. So you definately could lose more than the margin amount if you left it and did nothing. Eventually if it went well past your strike it would start to lose 1:1 the same as a future(potentially unlimited loss).
The advantages of futures options over equity options are that it is possible to go futher OTM and still receive a good premium for reasonable margin and less contracts are used so commissions are less.
There are some weekly futures options, two which i have used are ES and EUR (6E). CME Group have weekly options on ags and cattle see link below
I guess there are some weekly options but you can't trade them at OX.
And trying to sell them safely is just not possible. You have to be far too close to futures to make any money. Mar Corn settled Friday at 694. There is no OI below 680 puts for Week 1. The delta on the 680 is 0.2000. That's 6 times as high as I trade.